$(20$ Points$)$ If a project costs $$100,000$ and you will get $20,000$ a year for $10$ years what is the

payback period. Use the payback method to obtain the payback period.

a$.$ Can you accept a project based on the payback method alone, explain your

answer: No we can not accept the project based on the payback method alone

because we need to take into consideration the time value of money, which the

payback period does not take into account.

b$.$ Can you reject a project based on the payback method alone, explain your

answer: Yes. we can reject a project based on the payback method alone when

the packback period is more than the company is willing to accept.

Perform a differential analysis. $20$ points each $-40$ total points